GST on Steel & Cement Trading
This query is : Resolved
30 January 2024
Sirs,
In order to protect the Rate Fluction of Cement & Steel for our own warehouse construction, we have only supplied the same to the Contractor at the contract rate with them. As like Trading of activity of the said Goods, hence we have utlised the credit of the same against the sales made to the same contractor. Can this credit is allowed under GST?
As we have not taken the credit of Works Contract Bills given the contractor for constrction of Warehouse including the same items.
In order to protect the Rate Fluction of Cement & Steel for our own warehouse construction, we have only supplied the same to the Contractor at the contract rate with them. As like Trading of activity of the said Goods, hence we have utlised the credit of the same against the sales made to the same contractor. Can this credit is allowed under GST?
As we have not taken the credit of Works Contract Bills given the contractor for constrction of Warehouse including the same items.
31 January 2024
Yes, You can claim if You sell the cement and Steel to the Contractor. But, ITC not available If Contractor give GST bill.
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17 August 2025
Steel trading (iron, steel products) attracts 18% GST.
Cement trading comes under the highest GST slab of 28%.
Be cautious about misquoted cess—there is no additional cess beyond the 28% GST for cement. The total applicable tax remains 28%, not the inflated 31.36% sometimes cited.
Also, ensure correct HSN classification (such as 6810 for cement products) to avoid mismatches in tax rates and maintain clean compliance.
Summary Table:
Product GST Rate Notes
Steel 18% Standard rate
Cement 28% High GST slab, no extra cess
Cement trading comes under the highest GST slab of 28%.
Be cautious about misquoted cess—there is no additional cess beyond the 28% GST for cement. The total applicable tax remains 28%, not the inflated 31.36% sometimes cited.
Also, ensure correct HSN classification (such as 6810 for cement products) to avoid mismatches in tax rates and maintain clean compliance.
Summary Table:
Product GST Rate Notes
Steel 18% Standard rate
Cement 28% High GST slab, no extra cess
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